2003 (2) TMI 9

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....hallenging the order of the Income-tax Appellate Tribunal dated December 8, 2000, the Revenue has filed the present tax appeal under section 260A of the Income-tax Act, 1961, raising the following substantial question of law: "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in confirming the order of the Commissioner of Income-tax (Appeals) cancelling t....

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....985, a search action under section 132 of the Income-tax Act was conducted on the business premises of the assessee. Before any notice could be issued, the assessee filed a revised return of income under the amnesty scheme on March 25, 1986, declaring the total income of Rs. 15,52,660 which included unsubstantiated loan of Rs. 2,90,000, unexplained cash circulated through the capital accounts of t....

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....132 of the Income tax Act. Accordingly, the Assessing Officer levied penalty of Rs. 17,22,818 under section 271(1)(c) of the Income-tax Act. Being aggrieved by the aforesaid order, the assessee filed an appeal before the Commissioner of Income-tax (Appeals) who deleted the penalty on the ground that as per the order passed under section 132(5) of the Income-tax Act, the undisclosed income detec....

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....d by the income-tax authorities, the assessee is not entitled to the benefit of the amnesty scheme and accordingly the amount surrendered after the detection of concealment cannot be accepted and hence the penalty has been rightly imposed. From the order passed by the Commissioner of Income-tax (Appeals), it is evident that during the course of the search, no discrepancy was noticed by the search ....